Can I contribute to my employees' RRSP+ instead of offering a cash bonus?

Yes. In fact, this is a great way to give more to your employees. Amounts you pay your employees in the framework of an RRSP+ contribution program are not included in your payroll taxes.¹ Unlike traditional bonuses, these contributions have no impact on your deductions and employer contributions.

What's more, your employees will benefit from an additional 30% in tax savings2 on your voluntary contribution and on their own contributions, as long as the maximum annual amount eligible for tax credits has not already been reached.

To learn more, read our article on the subject.

Legal Notes
1
Payroll taxes charged to the employer include the Québec Pension Plan (QPP), Employment Insurance (EI), the Québec Parental Insurance Plan (QPIP), the Health Services Fund (HSF) and the Commission des normes, de l’équité, de la santé et de la sécurité du travail (CNESST). Certain contribution rates vary according to the employers specific situation.
2
The Fonds de solidarité FTQ's shareholders will receive 15% in tax credits from the Québec government and 15% from the federal government. They are capped at $1,500 per fiscal year, which represents a $5,000 purchase of shares of the Fonds de solidarité FTQ.
Please read the prospectus before buying Fonds de solidarité FTQ shares. Copies of the prospectus may be obtained on the Website fondsftq.com, from a local representative or at the offices of the Fonds de solidarité FTQ. The shares of the Fonds de solidarité FTQ are not guaranteed, their value changes and past performance may not be repeated.

Prospectus_EN ( 814 Kb )